Kirby Corporation to purchase Savage Inland Marine
Kirby Corp. announced today net earnings for the fourth quarter ended Dec. 31, 2019 of $2.8 million or five cents a share, compared with a net loss of $24.4 million or 41 cents a share for the 2018 fourth quarter.
Houston-based Kirby Corporation said it has signed a definitive agreement to acquire Savage Inland Marine's towboat and tank barge fleet for approximately $278 million in cash and the assumption of leases.
Savage’s tank barge fleet consists of 90 inland tank barges with approximately 2.5 million barrels of capacity and 46 inland towboats. The deal includes the assumption of leases.
Savage primarily moves petrochemicals, refined products, and crude oil on the Mississippi River, its tributaries, and the Gulf Intracoastal Waterway. Savage also operates a significant ship bunkering business as well as barge fleeting services along the Gulf Coast.
In a statement, Savage Inland Marine said, “Savage will continue to provide inland marine services to customers until the transaction is completed. Our offshore marine business and shore side services for some existing customers including dock operations, management, and logistics are unaffected by this agreement, and will remain an important part of our service offerings going forward.”
“We’re proud of the excellent service our inland marine team members have consistently provided for customers in the Gulf Coast and throughout the Intracoastal Waterway,” said Kirk Aubry, Savage president and CEO. “I’m confident that along with Kirby’s existing team, they’ll continue to provide value for chemical companies, refineries, and other businesses that transport bulk materials and products on the water.”
Maritime Business World